2015 Chinese Stock Market Crash

The great Chinese stock market crash started with the bursting of bubble on June 12-13 2015.- 30% of the grade A shares on the Shanghai Stock Exchange was lost within next 30 days and by July 27 to August 24 th it was falling and falling. Lose mounted day by day as 30 percent over three weeks as 1,400 companies halted from trading to stop further damages. While other companies were falling just to take out the trust from investors as they had began to suspect the original strength of Chinese stocks. They started to move to more stable US markets as they got opportunities in US market when US market also crashed as an after impact of Great Chinese crash. All contributed to a 2015 Chinese Stock Market Crash .

2015 Chinese Stock Market Crash

A reality and eye opener to the world.

Do you think 2015 Chinese Stock Market Crash is a man made one?

Just like any other stock crash the real reasons behind this crash is not known. But it is said to have a bad market strategy that Chinese cherished for years. The over production. This over production was real reason of accumulating surplus commodities in China. The world market was filled by Chinese products which are not good in quality but easy to use and available at very low cost. The production was getting higher every now and then while the cost of the companies soaring. The aim of this practice was to kill the competition from other and similar companies or products and establish a monopoly before increasing the price. But Chinese products got in a dogma. The more products at low cost were affordable toe every one but as per Chinese belief they will re buy every thing- that theory didn’t work as people began to think of quality as well. The products where lodged in warehouses and were accumulated like anything. Companies began to crumble and 2015 Chinese Stock Market Crash started like any thing.

2015 Chinese Stock Market Crash

How to get rid of Chinese influence.

As the investors started to move away from Chinese markets the 2015 Chinese Stock Market Crash started to open wide and began to threaten whole world as a worst recession. The people can start to invest in basic commodities and stocks of companies which provide basic things like food, some clothes etc- very essential for life. They can invest in medicine pharmacy companies as well. You must or any investor must aware of crashes like 2015 Chinese Stock Market Crash at any time.

So what about crude? -But even if Crude and petrol is important they fall in use of the Crude due to Chinese recession has pulled the demand of crude to minimum. Invest in FMCG, Food, medicine stocks which are un avoidable for every one. This will stable the investors money. People can stable themselves first before venture again in to uncharted waters of Chinese world. Any way 2015 Chinese Stock Market Crash taught us a lesson that even one of the strongest economy can fall with in days means any thing can happen to our lives. Uncertainty is playing the world of economy now.